Updated on March 22, 2024
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In our rigorous review process, a team of seasoned financial specialists, boasting more than 20 years of experience in Forex trading, carries out an exhaustive evaluation of various trading services. Our team delves deep into the investigation of fees, assesses the trading platforms, and verifies adherence to regulatory standards. We also interact directly with customer support and conduct actual trades to gain a real-world understanding of the trading conditions. This comprehensive approach enables us to provide informed insights and advice on why we recommend avoiding CMSTrader due to the issues we've identified.
Is CMSTrader Scam or Legit Broker? ▲
Our comprehensive analysis strongly suggests that traders should not engage with CMSTrader due to its offshore registration and lack of credible regulation. Owned by Safe Side Trading Ltd., CMSTrader falls under the jurisdiction of St. Vincent and the Grenadines—a location notorious for its minimal financial oversight and practically nonexistent requirements for forex trading entities. Such conditions have made this jurisdiction a haven for numerous questionable forex brokers, including the likes of Brokerz and TraderUR. Our in-depth examination of the risks associated with trading with brokers from St. Vincent and the Grenadines highlights the potential dangers and reinforces our recommendation to steer clear of CMSTrader.
CMSTrader, a Forex and CFD brokerage, operates under Safe Side Trading Ltd., which is based in the loosely regulated environment of St. Vincent and the Grenadines. Despite claims of having physical offices in reputable locations such as the UK, Switzerland, Bahrain, and Australia, CMSTrader lacks the necessary regulatory compliance in any of these countries. Additionally, it's worth noting that Safe Side Trading Ltd. is also associated with another offshore broker, 12trader, which has faced blacklisting within the EU. Given these concerns, we strongly advise against engaging with offshore brokers and instead recommend seeking companies that hold reputable licenses, such as those from the FCA in the UK or ASIC in Australia. These regulatory bodies impose strict guidelines and offer a degree of client protection not found with offshore entities. For example, to secure a license from the Australian Securities and Investments Commission (ASIC), brokers must demonstrate substantial financial stability, including a minimum capital of 1 million AUD, and maintain a physical office within Australia.
Given the significant concerns surrounding CMSTrader, we advise against trading with this broker and, as such, do not list any pros.
Offshore Registration: CMSTrader is registered in St. Vincent and the Grenadines, known for its lax financial regulations and oversight, making it a risky choice for traders.
Lack of Regulation: The broker is not regulated in any of the countries it claims to have offices in, raising serious concerns about its legitimacy and the safety of traders' funds.
Association with Blacklisted Entities: Safe Side Trading Ltd., the owner of CMSTrader, also operates another broker that has been blacklisted in the EU, further tarnishing its reputation.
Absence of Client Protection: Unlike brokers regulated by FCA or ASIC, CMSTrader does not offer the same level of client protection, such as compensation schemes in the event of broker insolvency.
In conclusion, our extensive review and analysis of CMSTrader reveal a multitude of red flags that cannot be ignored. The broker's offshore registration and complete lack of regulatory oversight in any reputable jurisdiction present significant risks to traders' funds and personal information. Furthermore, its association with other questionable entities and the absence of essential client protections typically provided by reputable regulatory bodies cement our recommendation to avoid CMSTrader entirely. Traders should instead consider well-regulated brokers with a solid reputation and a proven track record of compliance and client satisfaction. Trading with brokers regulated by authorities like the FCA in the UK or ASIC in Australia ensures a higher level of safety, reliability, and transparency, which are crucial for a positive trading experience. We strongly advise against opening an account with CMSTrader and recommend conducting thorough research before selecting a broker to trade with. In our assessment of over 1000 brokers, it is clear that traders' security and favorable trading conditions should be paramount, and CMSTrader fails to meet these fundamental criteria.
When considering alternatives, brokers like Interactive Brokers, City Index, and AvaTrade stand out. They not only offer the security of stringent regulation but also bring to the table comprehensive trading solutions that can meet the needs of both novice and seasoned traders.
CMSTrader Review 2024
